U.S. Initiates Probe into Security Risks of Chinese Connected Vehicle Technology

Concerns over potential national security risks posed by connected vehicles utilizing technology from China or other foreign adversaries have prompted the Biden administration to launch an investigation, announced Thursday.

The move underscores mounting apprehensions among government officials, Congress, and industry stakeholders regarding data security and the perceived threat of Chinese automakers expanding their footprint within the U.S. market.

President Joe Biden articulated these concerns, emphasizing the interconnected nature of vehicles with various systems and infrastructure. In a statement, he remarked, "Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People's Republic of China."

The administration cited the possibility of new vulnerabilities emerging if a foreign entity were to gain access to critical data or systems within vehicles. Specifically highlighted were components such as telematics, advanced driver-assistance technology, and battery management systems in electric vehicles.

Lael Brainard, White House national economic adviser, cautioned about the potential exploitation of connected vehicles sourced from China, warning that such vehicles could be manipulated in ways that jeopardize national security.

Highlighting existing restrictions in China, Brainard noted that connected vehicles operating in China are subject to limitations, mandating data provision exclusively to Chinese entities and the use of Chinese software.

To address these concerns, the U.S. Commerce Department initiated a regulatory process aimed at soliciting feedback from industry stakeholders and the public. The department seeks to evaluate potential rules or actions governing the use of specific information and communications technology in vehicles sourced from China.

Commerce Secretary Gina Raimondo stressed the significance of the inquiry, emphasizing the need to comprehend the extent of risks before determining a course of action. However, officials clarified that the department's actions do not currently encompass tariff-related measures.

Despite calls from industry groups such as the UAW and the Alliance for American Manufacturing to restrict Chinese market entry via Mexico, where tariff avoidance is possible, the department's focus remains on evaluating security risks associated with connected vehicle technology.

The investigation marks the initial phase of a broader inquiry, with officials emphasizing the collection of information and the absence of firm commitments regarding potential import bans on Chinese electric vehicles.